August 27, 2014, 1:22 PM

Q2 web sales grow 24.3% for LightInTheBox

Orders from mobile devices increase 175% and now account for 28.2% of total orders.

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Sales were strong in the second quarter for China-based web-only retailer LightInTheBox Holding Co. Ltd. But mobile really shined for the retailer, No. 28 in the Internet Retailer China 500, with orders from mobile devices increasing by 175% and now accounting for 28.2% of total orders the company says.

For the second quarter, LightInTheBox reports:

  • Web sales totaled $89.80 million, up 24.3% compared with $72.22 million a year earlier.
  • Total number of orders grew 52.8% to more than 2.20 million compared with about 1.44 million a year earlier.
  • Mobile orders increased to 28.2% of the total orders, compared with 16.8% in the same quarter of 2013.
  • Revenue from repeat customers accounted for 40.4% of total net revenue, compared with 32.5% in the same quarter of 2013.
  • Selling and marketing expenses as percentage of total net revenue were 27.7% compared with 31.8%,
  • Fulfillment expenses were $5.5 million, up 48.6% compared with $3.7 million in the same quarter of 2013, primarily reflecting the increase in sales volume and number of orders fulfilled, the company says.
  • As a percentage of total net revenue, fulfillment expenses increased to 6.1% from 5.2% in the same quarter of 2013, primarily as a result of smaller average order size, the retailer says. Fulfillment expenses per order improved to $2.50 from $2.60 in the same quarter of 2013.
  • Selling and marketing expenses were $24.8 million, up 26.6% compared with $19.6 million in the same quarter of 2013, reflecting the company's efforts to grow its customer base and market share.
  • General and administrative expenses were $11.5 million, up 30.7% from $8.8 million in the same quarter of 2013. The company says this is a result of growing its business.
  • LightInTheBox spent $3.7 million on technology compared with $2.4 million in the same quarter of 2013.
  • As a percentage of total net revenue, general and administrative expenses were 12.9%, down from 14.0% in the previous quarter.

“The strong performance was primarily driven by fast growth in our ready-to-wear apparel business, a solid recovery in wedding apparel sales, as well as increased contribution from our mobile channels and repeat customers,” says Alan Guo, chairman and CEO. “As a global online retail company, we continue to make good progress on growing our customer base, increasing customer satisfaction, and enhancing platform capabilities, including global fulfillment infrastructure and logistics optimization."

Apparel revenue rose 43.9% year-over-year to $35.4 million, compared with $24.6 million a year earlier. As a percentage of total net revenue, apparel sales were 39.5%, compared with 34.2% in the same quarter of 2013.

Geographically, revenue from Europe increased 25.6% to $55.4 million, up from $44.1 million a year earlier. Europe represents 61.7% of total net revenue. Revenue from North America grew 39.9% to $20.0 million from $14.3 million a year earlier and represents 22.3% of total net revenue in the quarter.

LightInTheBox went public in the U.S. in June 2013 and did not report sales and company metrics for the first half of 2014 compared with 2013.

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